I have lots of people asking me what in world is happening to MLM? Well thatís a good question and deserves a thoughtful answer.
Over past two years a lot has happened to MLM on Internet. The most obvious thing is that old MLM systems are not working like they are supposed to. People are getting smarter and can recognize hype for hype and owner oriented profit schemes more easily.
People are not biting on time worn scams so common on Internet these past few years. The old style of MLM, promising fast and easy money just plain doesnít work in todayís web environment. Impossible claims for quick and easy results with a fully automated system and with no work involved, just do not cut it anymore. Why? Because systems of this type do not work for anyone except owners of MLM in question, thatís why.
Why donít they work? Well to be successful in any MLM you must work your tail off and learn how to properly advertise and close your sales. Not only that, but you must actually recruit people to a downline and train and motivate them to duplicate your effort. Many people want to participate in MLM's but never learn basics of how to sell or close sales.
Then we come to compensation plans; most are front-loaded to benefit those high up in MLM downlines or matrices. Most compensation systems do not really pay enough to properly reward a person for building downlines. Letís face it, under current rules being enforced by most of regulatory agencies, paying for recruiting people is considered to be building a pryamid and that is a definite no-no. By law majority of income from MLM's must result from sales of products and services and not from recruiting people into program.
That does not mean that referral fees cannot be paid but such fees should be more or less fixed at level compensating those who do recruiting for time and work involved.
Recruiting cannot be main purpose of MLM. Yes, downline clubs may charge a membership fee and pay a referral fee for new members brought into program, but main source of earned income must come from retail sales of products and services.
It seems everyone has a system to get magic results with little or no work or time requirements. I wish it were so, but it just plain does not work that way my friend.
If you do not know and understand what a good MLM should offer you, it is time you took time to find out. Letís take a minute and talk about that and see what we can come up with.
For example never join a pure downline club or buy a membership in one until you know what products or services are offered by club for you to sell. Then determine if compensation plan offers a real percentage of retail sales as commissions and not some cooked-up business volume system, which requires reaching certain levels of production to qualify for commissions. If MLM requires you to purchase a product in order to be authorized to sell it, make sure you can buy product or service at a discounted rate or at cost. Required purchases for members must be, by law, not subject to commissions for MLM upline or company involved.